Jackson Financial (NYSE:JXN – Get Rating) and Sun Life Financial (NYSE:SLF – Get Rating) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
This is a summary of current recommendations and price targets for Jackson Financial and Sun Life Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sun Life Financial||1||2||5||0||2.50|
Jackson Financial currently has a consensus target price of $41.00, suggesting a potential upside of 22.24%. Sun Life Financial has a consensus target price of $71.90, suggesting a potential upside of 49.92%. Given Sun Life Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Sun Life Financial is more favorable than Jackson Financial.
Jackson Financial pays an annual dividend of $2.20 per share and has a dividend yield of 6.6%. Sun Life Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.3%. Jackson Financial pays out 8.7% of its earnings in the form of a dividend. Sun Life Financial pays out 39.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sun Life Financial has raised its dividend for 1 consecutive years. Jackson Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Jackson Financial and Sun Life Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sun Life Financial||11.38%||13.66%||1.08%|
Institutional & Insider Ownership
81.2% of Jackson Financial shares are held by institutional investors. Comparatively, 47.1% of Sun Life Financial shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Jackson Financial and Sun Life Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Jackson Financial||$8.85 billion||0.33||$3.18 billion||$25.16||1.33|
|Sun Life Financial||$28.47 billion||0.99||$3.49 billion||$5.23||9.17|
Sun Life Financial has higher revenue and earnings than Jackson Financial. Jackson Financial is trading at a lower price-to-earnings ratio than Sun Life Financial, indicating that it is currently the more affordable of the two stocks.
Sun Life Financial beats Jackson Financial on 9 of the 15 factors compared between the two stocks.
Jackson Financial Company Profile (Get Rating)
Jackson Financial Inc., through its subsidiaries, primarily provides a suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and immediate payout annuities, as well as registered index-linked annuities and lifetime income solutions. The Institutional Products segment provides traditional guaranteed investment contracts; funding agreements comprising agreements issued in conjunction with its participation in the U.S. federal home loan bank program; and medium-term funding agreement-backed notes. The Closed Life and Annuity Blocks segment offers various protection products, such as whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities. This segment also provides a block of group payout annuities. The company also offers investment management services. It sells its products through a distribution network that includes independent broker-dealers, banks and other financial institutions, wirehouses and regional broker-dealers, and independent registered investment advisors, third-party platforms, and insurance agents. Jackson Financial Inc. was formerly known as Brooke (Holdco1) Inc. and changed its name to Jackson Financial Inc. in July 2020. The company was incorporated in 2006 and is headquartered in Lansing, Michigan.
Sun Life Financial Company Profile (Get Rating)
Sun Life Financial Inc., a financial services company, provides insurance, wealth, and asset management solutions to individuals and corporate clients worldwide. It offers term and permanent life, as well as personal health, dental, critical illness, long-term care, and disability insurance products. The company also provides reinsurance products; investment counselling and portfolio management services; mutual funds and segregated funds; trust and banking services; real estate property brokerage and appraisal services; and merchant banking services. It distributes its products through direct sales agents, managing and independent general agents, financial intermediaries, broker-dealers, banks, pension and benefits consultants, and other third-party marketing organizations. The company was founded in 1871 and is headquartered in Toronto, Canada.
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